AMD, Intel to be negatively impacted by PC downturn — Citi
AMD, Intel to be negatively impacted by PC downturn — Citi
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By Sam Boughedda
Citi analysts maintained Neutral ratings on Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) as they expect the PC downturn to negatively impact both companies.
«October notebook shipments were down 17% MoM, below Citi’s expectation of down 12% QoQ, due to continued inventory digestion and demand deterioration,» said the analysts. «Carrie Liu, our notebook analyst, lowered her 4Q22 notebook shipment again from down 9% QoQ to down 15% QoQ, well below historical seasonality of up 2% QoQ.»
Citi now expects a 23% YoY decline in notebook shipments, down from the previous forecast of a 22% YoY fall, and believes notebook shipments should continue to trend down in 2023.
«We believe notebook shipments should continue declining in 2023 as current forecast is still roughly 17% higher than pre-pandemic levels. We note that both AMD and Intel are expecting PC shipments to be down mid-single digit to 10% YoY in 2023,» the analysts added.
«We maintain our Neutral ratings on Intel and AMD as we believe there is more downside to Consensus estimates given collapsing PC demand. Our C23 EPS for AMD is 31% below Consensus while our C23 EPS for INTC is 13% below Consensus.»
